Alteration of Company amending articles so as to empower its board to expel member in certain circumstances

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..... l Government where a public limited company has amended its articles of association by including a clause by a special resolution passed at the extraordinary general meeting of the company empowering the board of directors of the company to expel a member in a case where the board is prima facie of the view that activities or conduct of the member is detrimental to the interests of the company or .....

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..... under section 111 and the powers of the courts under sections 107 and 395 and is, therefore, void by the operation of the provisions of section 9. The articles of association is a contract between the company and its members setting out the rights of members inter se under the contract and expulsion of a member is not only a violation of this contract but it is also opposed to the principles of n .....

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..... ny provision pertaining to the expulsion of a member by the management of a company which is against the law as laid down by the Supreme Court will be illegal and ultra vires. In the light of the aforesaid position, it is clarified that assumption by the board of directors of a company of any power to expel a member by amending its articles of association is illegal and void.
Circular, Trade N .....

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